Intercept Investors Lose Liver Drug Securities Suit Revival Bid

Intercept Pharmaceuticals Inc. remains free of a securities fraud suit after the Second Circuit determined investors failed to sufficiently allege that the company intentionally misled them about the safety of a new liver drug.

The biopharmaceutical firm allegedly made knowingly misleading statements about Ocaliva, a treatment for a rare liver disease, when it didn’t disclose serious adverse events, side effects, and unintentional overdoses. The would-be class complaint fell short of alleging the required mental state and a proposed amended complaint didn’t cure those deficiencies, the US Court of Appeals for the Second Circuit said in an unpublished opinion.

The ...